How to Get Gen Z and Millennials to Stay

How to Get Gen Z and Millennials to Stay - Hint: It's Not Free Pizza

When I was growing up, Friday night was pizza night. While I found free pizza to be an attractive draw in my college days, that's not what Gen Z and Millennial workers are looking for from their employers. So let's talk about it.

There's been a strong focus on recruitment lately, with The Great Resignation, a shift toward remote and hybrid work environments, and a complete restructuring and reimagining of what work life can be. However, just as important, if not MORE important than recruitment, is retention.

Retention can make or break your business.

I did the math on retention for one company. Turns out, to replace an old employee with a new one, it actually cost them two times the annual salary of the employee they were replacing. This is right in line with a Gallup article that estimated costs of replacing an employee at one-half to two times the annual salary on the conservative side. One of the best financial decisions a company can make is investing in retention strategies.

So, what are some powerful retention strategies you can employ, especially for younger generations?

Add a sense of purpose to your work.

In my time in the Wisconsin Sustainable Business Council’s 21st Century Pathways Program, we learned that:

• 65% of employees feel more loyalty to a business that has purpose.
• When looking for a new job, deeper purpose was the second-most important factor (after pay and benefits and ahead of promotion).
• Plus, two-thirds (64%) of employees will go the extra mile for an organization that has purpose.

I’m sure this won’t surprise you, but this trend is set to grow.

Millennials and Gen Z find sustainability, both in environmental and work/life balance issues, even more important than when looking at all age groups:

• 88% of millennials want employers to share their corporate social responsibility (CSR) commitments, and they also want to help employers improve their CSR efforts and reach their CSR goals.

Not only are these values important to them, but they’re willing to put in the work to help a company achieve their commitments:

• 89% of millennials want hands‐on activities around environmental responsibility at their workplace.

Gen Z is also looking beyond CSR to how the workplace will treat them.

They value their personal well‐being and need a strong work-life balance.

When it comes to making commitments, they can spot BS from a mile away – authenticity is extremely important to them. Gen Z workers are also looking for employee wellness programs, such as stress reduction and human‐centered workplace cultures, as well as a flexible work environment.

No matter the generations you're trying to attract or retain, doing so through purpose and social engagement is good for business.

When employees are at socially engaged companies, they're more likely to stay. They feel more optimistic about the company's future and believe it is more competitive.

If you're struggling with recruitment or retention, keep these statistics in mind. Being a socially engaged company that has a plan for sustainability can aid in your retention efforts and reap long-term benefits:

• Employees will be more likely to stay
• Socially engaged companies are seen as more competitive
• Employees are more optimistic about their future
• Employees are more likely to feel inspired when working

Isn't it great when something that is beneficial for society is also beneficial for your business?

Listen, I'm not saying you have to get on TikTok (although, that wouldn't hurt). I am saying you should focus on adding purpose to what you do in meaningful, authentic ways to connect with younger generations. It will boost your attraction and retention efforts in a way that could ripple out for decades.

Ready to take the first step? Have questions? Shoot me a DM with a ?? emoji (you know, for like, turnover? Get it? OK, I'll show myself out)

Until next week,

Sammi ??